$32 is a zone that has seen price treat as prior support in early January and resistance over the last few days. Technically, the new key zone of resistance sits around $32 per barrel. Non-OPEC shale producers in the US are producing to stay afloat because their ability to take care of the right side of their balance sheet is dependent on barrels of Oil produced. In addition, as a friendly reminder, production continues to increase, and recent news has come out about Saudi Arabia, Iran, and Russia all in line to provide China with more Oil in the coming years. Until key resistance levels break, there are few indications that big buyers are showing up, but rather weak hands that will easily be pushed aside on the next move down. Yes, as Oil gets closer to $0, it is by definition getting closer to a bottom, but those type of “bottom-bets” have been disastrous for many hedge funds and speculators in this + 18-month slide.Īs Oil has fallen to a new 12-year low, the technical picture, aside from being bearish, has provided key levels of resistance that are worth noting. Just a reminder: If you buy Oil at $30/bb and it drops to $20, which is a drop in the asset you invested in by 33%. Oil has to be near a bottom! It is getting outrageously cheap. WTI printed at 12-yr low of $28.19/bbl yesterday, and shows no signs of abating.Intermarket Analysis Turns Focus of Price Pressure On US Dollar Strength.Crude Oil Technical Strategy: Oil August Low Holds As Resistance, Focus toward $26bbl.
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